You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met.

Dependent taxpayer test.

Joint return test.

Citizen or resident test.

These three tests are explained in detail later.

All the requirements for claiming an exemption for a dependent are summarized in
Table 3-1.

Dependent not allowed a personal exemption.
If you can claim an exemption for your dependent, the dependent cannot claim his
or her own personal exemption on his or her own tax return. This is true even if
you do not claim the dependent's exemption on your return.

If you could be claimed as a dependent by another person, you cannot claim anyone else as a dependent. Even if you have a qualifying child or qualifying relative, you cannot claim that person as a
dependent.

If you are filing a joint return and your spouse could be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint
return.

Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Neither is required to file a tax return. They do not have a child. Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. You can claim exemptions for each of them if all the other tests to do so are
met.

The facts are the same as in Example 2 except your son is 26 years old and had $2,000 of wages. No taxes were taken out of his pay, and he and his wife are not required to file a tax return. However, they file a joint return to claim an earned income credit of $155 and get a refund of that amount. They file the return to get the earned income credit, so they are not filing it only as a claim for refund. The exception to the joint return test does not apply, so you cannot claim an exemption for either of
them.

You cannot claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico. However, there is an exception for certain adopted children, as explained
next.

If you are a U.S. citizen or U.S. national who has legally adopted a child who is not a U.S. citizen, U.S. resident alien, or U.S. national, this test is met if the child lived with you as a member of your household all year. This exception also applies if the child was lawfully placed with you for legal
adoption.

Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally are not U.S. residents and do not meet this test. You cannot claim an exemption for them. However, if you provided a home for a foreign student, you may be able to take a charitable contribution deduction. See
Expenses Paid for Student Living With You in chapter 24.

A U.S. national is an individual who, although not a U.S. citizen, owes his or her allegiance to the United States. U.S. nationals include American Samoans and Northern Mariana Islanders who chose to become U.S. nationals instead of U.S. citizens.

Table 3-1. Overview of the Rules for Claiming an Exemption for a
Dependent

Caution.
This table is only an overview of the rules. For details, see the rest of this
chapter.

You cannot claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by another
taxpayer.

You cannot claim a married person who files a joint return as a dependent unless that joint return is only a claim for refund and there would be no tax liability for either spouse on separate returns.

You cannot claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or
Mexico.1

You cannot claim a person as a dependent unless that person is your
qualifying child or
qualifying relative.

Tests To Be a Qualifying Child

Tests To Be a Qualifying Relative

The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of
them.

The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a full-time student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled.

The child must have lived with you for more than half of the
year.2

The child must not have provided more than half of his or her own support for the
year.

The child is not filing a joint return for the year (unless that return is filed only as a claim for
refund).

If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. See the
Special Rule for Qualifying Child of More Than One Person
to find out which person is the person entitled to claim the child as a
qualifying child.

The person cannot be your qualifying child or the qualifying child of any other
taxpayer.

The person either (a) must be related to you in one of the ways listed under
Relatives who do not have to live with you, or (b) must live with you all year as a member of your
household2 (and your relationship must not violate local law).

The person's gross income for the year must be less than
$3,700.3

You must provide more than half of the person's total support for the
year.4

1There is an exception for certain adopted children.

2There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents or

parents who live apart, and kidnapped children.

3There is an exception if the person is disabled and has income from a sheltered workshop.

4There are exceptions for multiple support agreements, children of divorced or separated parents or parents who live apart, and kidnapped

To be your qualifying child, a child who is not permanently and totally disabled must be younger than you. However, if you are married filing jointly, the child must be younger than you or your spouse but does not have to be younger than both of
you.

Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. He is not disabled. Both you and your spouse are 21 years old, and you file a joint return. Your brother is not your qualifying child because he is not younger than you or your
spouse.

Example 2—child younger than your spouse but not younger than
you.(p27)

The facts are the same as in Example 1 except that your spouse is 25 years old. Because your brother is younger than your spouse and you and your spouse are filing a joint return, your brother is your qualifying child, even though he is not younger than
you.

A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. However, an on-the-job training course, correspondence school, or school offering courses only through the Internet does not count as a school.

To meet this test, your child must have lived with you for more than half of the year. There are exceptions for temporary absences, children who were born or died during the year, kidnapped children, and children of divorced or separated
parents.

A child who was born or died during the year is treated as having lived with you all year if your home was the child's home the entire time he or she was alive during the year. The same is true if the child lived with you all year except for any required hospital stay following
birth.

You may be able to claim an exemption for a child who was born alive during the year, even if the child lived only for a moment. State or local law must treat the child as having been born alive. There must be proof of a live birth shown by an official document, such as a birth certificate. The child must be your qualifying child or qualifying relative, and all the other tests to claim an exemption for a dependent must be
met.

Children of divorced or separated parents or parents who live
apart.(p28)

In most cases, because of the residency test, a child of divorced or separated parents is the qualifying child of the custodial parent. However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following statements are true.

The parents:

Are divorced or legally separated under a decree of divorce or separate
maintenance,

Are separated under a written separation agreement, or

Lived apart at all times during the last 6 months of the year, whether or not they are or were
married.

The child received over half of his or her support for the year from the
parents.

The child is in the custody of one or both parents for more than half of the
year.

A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2011 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child's support during the
year.

The custodial parent is the parent with whom the child lived for the greater number of nights during the year. The other parent is the noncustodial
parent.

If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the rest of the
year.

A child is treated as living with a parent for a night if the child sleeps:

At that parent's home, whether or not the parent is present,
or

In the company of the parent, when the child does not sleep at a parent's home (for example, the parent and child are on vacation
together).

If a child was not with either parent on a particular night (because, for example, the child was staying at a friend's house), the child is treated as living with the parent with whom the child normally would have lived for that night, except for the absence. But if it cannot be determined with which parent the child normally would have lived or if the child would not have lived with either parent that night, the child is treated as not living with either parent that
night.

If, due to a parent's nighttime work schedule, a child lives for a greater number of days but not nights with the parent who works at night, that parent is treated as the custodial parent. On a school day, the child is treated as living at the primary residence registered with the
school.

In 2011, your daughter lives with each parent for alternate weeks. In the summer, she spends 6 weeks at summer camp. During the time she is at camp, she is treated as living with you for 3 weeks and with her other parent, your ex-spouse, for 3 weeks because this is how long she would have lived with each parent if she had not attended summer camp.

Your son lived with you 180 nights during the year and lived the same number of nights with his other parent, your ex-spouse. Your AGI is $40,000. Your ex-spouse's AGI is $25,000. You are treated as your son's custodial parent because you have the higher
AGI.

Your son normally lives with you during the week and with his other parent, your ex-spouse, every other weekend. You become ill and are hospitalized. The other parent lives in your home with your son for 10 consecutive days while you are in the hospital. Your son is treated as living with you during this 10-day period because he was living in your
home.

When your son turned age 18 in May 2011, he became emancipated under the law of the state where he lives. As a result, he is not considered in the custody of his parents for more than half of the year. The special rule for children of divorced or separated parents does not
apply.

Your daughter lives with you from January 1, 2011, until May 31, 2011, and lives with her other parent, your ex-spouse, from June 1, 2011, through the end of the year. She turns 18 and is emancipated under state law on August 1, 2011. Because she is treated as not living with either parent beginning on August 1, she is treated as living with you the greater number of nights in 2011. You are the custodial
parent.

The custodial parent may use either Form 8332 or a similar statement (containing
the same information required by the form) to make the written declaration to
release the exemption to the noncustodial parent. The noncustodial parent must
attach a copy of the form or statement to his or her tax return.

The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the
declaration.

If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. The decree or agreement must state all three of the following.

The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of
support.

The custodial parent will not claim the child as a dependent for the
year.

The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a
dependent.

The noncustodial parent must attach all of the following pages of the decree or agreement to his or her tax return.

The cover page (write the other parent's social security number on this
page).

The pages that include all of the information identified in items (1) through (3)
above.

The signature page with the other parent's signature and the date of the
agreement.

The noncustodial parent cannot attach pages from the decree or agreement instead of Form 8332 if the decree or agreement went into effect after 2008. The custodial parent must sign either Form 8332 or a similar statement whose only purpose is to release the custodial parent's claim to an exemption for a child, and the noncustodial parent must attach a copy to his or her return. The form or statement must release the custodial parent's claim to the child without any conditions. For example, the release must not depend on the noncustodial parent paying
support.

The noncustodial parent must attach the required information even if it was filed with a return in an earlier
year.

The custodial parent can revoke a release of claim to exemption that he or she previously released to the noncustodial parent on Form 8332 or a similar statement. In order for the revocation to be effective for 2011, the custodial parent must have given (or made reasonable efforts to give) written notice of the revocation to the noncustodial parent in 2010 or earlier. The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to his or her return for each tax year he or she claims the child as a dependent as a result of the
revocation.

To meet this test, the child cannot have provided more than half of his or her own support for the
year.

This test is different from the support test to be a qualifying relative, which is described later. However, to see what is or is not support, see
Support Test (To Be a Qualifying Relative), later. If you are not sure whether a child provided more than half of his or her own support, you may find
Worksheet 3-1 helpful.

You provided $4,000 toward your 16-year-old son's support for the year. He has a part-time job and provided $6,000 to his own support. He provided more than half of his own support for the year. He is not your qualifying
child.

Payments you receive for the support of a foster child from a child placement agency are considered support provided by the agency. Similarly, payments you receive for the support of a foster child from a state or county are considered support provided by the state or
county.

If you are not in the trade or business of providing foster care and your unreimbursed out-of-pocket expenses in caring for a foster child were mainly to benefit an organization qualified to receive deductible charitable contributions, the expenses are deductible as charitable contributions but are not considered support you provided. For more information about the deduction for charitable contributions, see
chapter 24. If your unreimbursed expenses are not deductible as charitable contributions, they are considered support you provided.

If you are in the trade or business of providing foster care, your unreimbursed expenses are not considered support provided by
you.

Lauren, a foster child, lived with Mr. and Mrs. Smith for the last 3 months of
the year. The Smiths cared for Lauren because they wanted to adopt her (although
she had not been placed with them for adoption). They did not care for her as a
trade or business or to benefit the agency that placed her in their home. The
Smiths' unreimbursed expenses are not deductible as charitable contributions but
are considered support they provided for Lauren.

You provided $3,000 toward your 10-year-old foster child's support for the year. The state government provided $4,000, which is considered support provided by the state, not by the child. See
Support provided by the state (welfare, food stamps, housing,
etc.), later. Your foster child did not provide more than half of her own support for the
year.

You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. The couple files a joint return. Because your daughter filed a joint return, she is not your qualifying
child.

Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Neither is required to file a tax return. They do not have a child. Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are
met.

The facts are the same as in Example 2 except your son is 26 years old and had $2,000 of wages. No taxes were taken out of his pay, and he and his wife were not required to file a tax return. However, they file a joint return to claim an earned income credit of $155 and get a refund of that amount. They file the return to get the earned income credit, so they are not filing it only as a claim for refund. The exception to the joint return test does not apply, so your son is not your qualifying
child.

If your qualifying child is not a qualifying child of anyone else, this special rule does not apply to you and you do not need to read about it. This is also true if your qualifying child is not a qualifying child of anyone else except your spouse with whom you file a joint
return.

Sometimes, a child meets the relationship, age, residency, support, and joint return tests to be a qualifying child of more than one person. Although the child is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit).

The exemption for the child.

The child tax credit.

Head of household filing status.

The credit for child and dependent care expenses.

The exclusion from income for dependent care benefits.

The earned income credit.

The other person cannot take any of these benefits based on this qualifying child. In other words, you and the other person cannot agree to divide these benefits between you. The other person cannot take any of these tax benefits unless he or she has a different qualifying
child.

To determine which person can treat the child as a qualifying child to claim these six tax benefits, the following tie-breaker rules apply.

If only one of the persons is the child's parent, the child is treated as the qualifying child of the
parent.

If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time during the year. If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for the
year.

If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for the
year.

If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. If the child's parents file a joint return with each other, this rule can be applied by dividing the parents' combined AGI equally between the parents. See
Example 6.

Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying
child.

Jane is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. However, only one of you can claim her. Jane is not a qualifying child of anyone else, including her father. You agree to let your mother claim Jane. This means your mother can claim Jane as a qualifying child for all of the six tax benefits listed earlier, if she qualifies (and if you do not claim Jane as a qualifying child for any of those tax
benefits).

The facts are the same as in
Example 1
except that you and your mother both claim Jane as a qualifying child. In this
case, you as the child's parent will be the only one allowed to claim Jane as a
qualifying child. The IRS will disallow your mother's claim to the six tax
benefits listed earlier unless she has another qualifying child.

The facts are the same as in
Example 1
except you also have two other young children who are qualifying children of
both you and your mother. Only one of you can claim each child. However, if your
mother's AGI is higher than yours, you can allow your mother to claim one or
more of the children. For example, if you claim one child, your mother can claim
the other two.

The facts are the same as in
Example 1
except you are only 18 years old and did not provide more than half of your own
support for the year. This means you are your mother's qualifying child. If she
can claim you as a dependent, then you cannot claim your daughter as a dependent
because of the
Dependent Taxpayer Test explained earlier.

The facts are the same as in
Example 1
except that you and your daughter's father are married to each other, live with
your daughter and your mother, and have AGI of $20,000 on a joint return. If you
and your husband do not claim your daughter as a qualifying child, your mother
can claim her instead. Even though the AGI on your joint return, $20,000, is
more than your mother's AGI of $15,000, for this purpose each parent's AGI can
be treated as $10,000, so your mother's $15,000 AGI is treated as higher than
the highest AGI of any of the child's parents who can claim the child.

You, your husband, and your 10-year-old son lived together until August 1, 2011, when your husband moved out of the household. In August and September, your son lived with you. For the rest of the year, your son lived with your husband, the boy's father. Your son is a qualifying child of both you and your husband because your son lived with each of you for more than half the year and because he met the relationship, age, support, and joint return tests for both of you. At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the rule for children of divorced or separated parents or parents who live apart does not
apply.

You and your husband will file separate returns. Your husband agrees to let you treat your son as a qualifying child. This means, if your husband does not claim your son as a qualifying child, you can claim your son as a qualifying child for the dependency exemption, child tax credit, and exclusion for dependent care benefits, if you qualify for each of those tax benefits. However, you cannot claim head of household filing status because you and your husband did not live apart for the last 6 months of the year. As a result, your filing status is married filing separately, so you cannot claim the earned income credit or the credit for child and dependent care
expenses.

The facts are the same as in
Example 7
except that you and your husband both claim your son as a qualifying child. In
this case, only your husband will be allowed to treat your son as a qualifying
child. This is because, during 2011, the boy lived with him longer than with
you. If you claimed an exemption, the child tax credit, or the exclusion for
dependent care benefits for your son, the IRS will disallow your claim to all
these tax benefits, unless you have another qualifying child. In addition,
because you and your husband did not live apart for the last 6 months of the
year, your husband cannot claim head of household filing status. As a result,
his filing status is married filing separately, so he cannot claim the earned
income credit or the credit for child and dependent care expenses.

You, your 5-year-old son, and your son's father lived together all year. You and your son's father are not married. Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, support, and joint return tests for both you and his father. Your AGI is $12,000 and your son's father's AGI is $14,000. Your son's father agrees to let you claim the child as a qualifying child. This means you can claim him as a qualifying child for the dependency exemption, child tax credit, head of household filing status, credit for child and dependent care expenses, exclusion for dependent care benefits, and the earned income credit, if you qualify for each of those tax benefits (and if your son's father does not, in fact, claim your son as a qualifying child for any of those tax
benefits).

The facts are the same as in
Example 9
except that you and your son's father both claim your son as a qualifying child.
In this case, only your son's father will be allowed to treat your son as a
qualifying child. This is because his AGI, $14,000, is more than your AGI,
$12,000. If you claimed an exemption, the child tax credit, head of household
filing status, credit for child and dependent care expenses, exclusion for
dependent care benefits, or the earned income credit for your son, the IRS will
disallow your claim to all these tax benefits, unless you have another
qualifying child.

You and your 7-year-old niece, your sister's child, lived with your mother all year. You are 25 years old, and your AGI is $9,300. Your mother's AGI is $15,000. Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. However, only your mother can treat her as a qualifying child. This is because your mother's AGI, $15,000, is more than your AGI,
$9,300.

Applying this special rule to divorced or separated parents or parents who live
apart.(p31)

If a child is treated as the qualifying child of the noncustodial parent under the rules described earlier for
children of divorced or separated parents or parents who live
apart, only the noncustodial parent can claim an exemption and the child tax credit for the child. However, the custodial parent, if eligible, or other eligible person can claim the child as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit. If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules will determine which person can treat the child as a qualifying
child.

You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Your AGI is $10,000. Your mother's AGI is $25,000. Your son's father did not live with you or your
son.

Under the rules explained earlier for children of divorced or separated parents
or parents who live apart, your son is treated as the qualifying child of his
father, who can claim an exemption and the child tax credit for him. Because of
this, you cannot claim an exemption or the child tax credit for your son.
However, your son's father cannot claim your son as a qualifying child for head
of household filing status, the credit for child and dependent care expenses,
the exclusion for dependent care benefits, or the earned income credit.

You and your mother did not have any child care expenses or dependent care benefits, but the boy is a qualifying child of both you and your mother for head of household filing status and the earned income credit because he meets the relationship, age, residency, support, and joint return tests for both you and your mother. (Note: The support test does not apply for the earned income credit.) However, you agree to let your mother claim your son. This means she can claim him for head of household filing status and the earned income credit if she qualifies for each and if you do not claim him as a qualifying child for the earned income credit. (You cannot claim head of household filing status because your mother paid the entire cost of keeping up the
home.)

The facts are the same as in
Example 1
except that your AGI is $25,000 and your mother's AGI is $21,000. Your mother
cannot claim your son as a qualifying child for any purpose because her AGI is
not higher than yours.

The facts are the same as in
Example 1
except that you and your mother both claim your son as a qualifying child for
the earned income credit. Your mother also claims him as a qualifying child for
head of household filing status. You as the child's parent will be the only one
allowed to claim your son as a qualifying child for the earned income credit.
The IRS will disallow your mother's claim to the earned income credit and head
of household filing status unless she has another qualifying child.

Your son lives with you but is not your qualifying child because he is 30 years old and does not meet the age test. He may be your qualifying relative if the gross income test and the support test are
met.

Your 13-year-old grandson lived with his mother for 3 months, with his uncle for 4 months, and with you for 5 months during the year. He is not your qualifying child because he does not meet the residency test. He may be your qualifying relative if the gross income test and the support test are
met.

A child is not the qualifying child of any other taxpayer and so may qualify as your qualifying relative if the child's parent (or other person for whom the child is defined as a qualifying child) is not required to file an income tax return and either:

Does not file an income tax return, or

Files a return only to get a refund of income tax withheld or estimated tax
paid.

You support an unrelated friend and her 3-year-old child, who lived with you all year in your home. Your friend has no gross income, is not required to file a 2011 tax return, and does not file a 2011 tax return. Both your friend and her child are your qualifying relatives if the member of household or relationship test, gross income test, and support test are
met.

The facts are the same as in
Example 1
except your friend had wages of $1,500 during the year and had income tax
withheld from her wages. She files a return only to get a refund of the income
tax withheld and does not claim the earned income credit or any other tax
credits or deductions. Both your friend and her child are your qualifying
relatives if the member of household or relationship test, gross income test,
and support test are met.

The facts are the same as in
Example 2
except your friend had wages of $8,000 during the year and claimed the earned
income credit on her return. Your friend's child is the qualifying child of
another taxpayer (your friend), so you cannot claim your friend's child as your
qualifying relative.

A child who lives in Canada or Mexico may be your qualifying relative, and you may be able to claim the child as a dependent. If the child does not live with you, the child does not meet the residency test to be your qualifying child. If the persons the child does live with are not U.S. citizens and have no U.S. gross income, those persons are not "taxpayers," so the child is not the qualifying child of any other taxpayer. If the child is not your qualifying child or the qualifying child of any other taxpayer, the child is your qualifying relative if the gross income test and the support test are
met.

You cannot claim as a dependent a child who lives in a foreign country other than Canada or Mexico, unless the child is a U.S. citizen, U.S. resident alien, or U.S. national. There is an exception for certain adopted children who lived with you all year. See
Citizen or Resident Test, earlier.

You provide all the support of your children, ages 6, 8, and 12, who live in Mexico with your mother and have no income. You are single and live in the United States. Your mother is not a U.S. citizen and has no U.S. income, so she is not a "taxpayer." Your children are not your qualifying children because they do not meet the residency test. Also, they are not the qualifying children of any other taxpayer, so they are your qualifying relatives and you can claim them as dependents if all the tests are met. You may also be able to claim your mother as a dependent if all the tests are met, including the gross income test and the support
test.

You and your wife began supporting your wife's father, a widower, in 2005. Your wife died in 2010. In spite of your wife's death, your father-in-law continues to meet this test, even if he does not live with you. You can claim him as a dependent if all other tests are met, including the gross income test and support
test.

If you file a joint return, the person can be related to either you or your spouse. Also, the person does not need to be related to the spouse who provides
support.

For example, your spouse's uncle who receives more than half of his support from you may be your qualifying relative, even though he does not live with you. However, if you and your spouse file separate returns, your spouse's uncle can be your qualifying relative only if he lives with you all year as a member of your household.

A person who died during the year, but lived with you as a member of your household until death, will meet this test. The same is true for a child who was born during the year and lived with you as a member of your household for the rest of the year. The test is also met if a child lived with you as a member of your household except for any required hospital stay following birth.

If your dependent died during the year and you otherwise qualified to claim an exemption for the dependent, you can still claim the
exemption.

Your dependent mother died on January 15. She met the tests to be your qualifying relative. The other tests to claim an exemption for a dependent were also met. You can claim an exemption for her on your
return.

Your girlfriend lived with you as a member of your household all year. However, your relationship with her violated the laws of the state where you live, because she was married to someone else. Therefore, she does not meet this test and you cannot claim her as a
dependent.

Gross income is all income in the form of money, property, and services that is not exempt from
tax.

In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business.

Gross receipts from rental property are gross income. Do not deduct taxes, repairs, etc., to determine the gross income from rental property.

Gross income includes a partner's share of the gross (not a share of the net) partnership income.

Gross income also includes all taxable unemployment compensation and certain
scholarship and fellowship grants. Scholarships received by degree candidates
that are used for tuition, fees, supplies, books, and equipment required for
particular courses may not be included in gross income. For more information
about scholarships, see
chapter 12.

Tax-exempt income, such as certain social security benefits, is not included in gross income.

For purposes of this test (the gross income test), the gross income of an individual who is permanently and totally disabled at any time during the year does not include income for services the individual performs at a sheltered workshop. The availability of medical care at the workshop must be the main reason for the individual's presence there. Also, the income must come solely from activities at the workshop that are incident to this medical
care.

A "sheltered workshop" is a school that:

Provides special instruction or training designed to alleviate the disability of the individual,
and

Is operated by certain tax-exempt organizations, or by a state, a U.S. possession, a political subdivision of a state or possession, the United States, or the District of
Columbia.

You figure whether you have provided more than half of a person's total support by comparing the amount you contributed to that person's support with the entire amount of support that person received from all sources. This includes support the person provided from his or her own funds.

You may find
Worksheet 3-1
helpful in figuring whether you provided more than half of a person's support.

Your mother received $2,400 in social security benefits and $300 in interest. She paid $2,000 for lodging and $400 for recreation. She put $300 in a savings
account.

Even though your mother received a total of $2,700 ($2,400 + $300), she spent only $2,400 ($2,000 + $400) for her own support. If you spent more than $2,400 for her support and no other support was received, you have provided more than half of her
support.

The part of the allotment contributed by the government and the part taken out of your military pay are both considered provided by you in figuring whether you provide more than half of the support. If your allotment is used to support persons other than those you name, you can take the exemptions for them if they otherwise qualify.

You are in the Armed Forces. You authorize an allotment for your widowed mother that she uses to support herself and her sister. If the allotment provides more than half of each person's support, you can take an exemption for each of them, if they otherwise qualify, even though you authorize the allotment only for your
mother.

These allowances are treated the same way as dependency allotments in figuring support. The allotment of pay and the tax-exempt basic allowance for quarters are both considered as provided by you for support.

In figuring a person's total support, include tax-exempt income, savings, and borrowed amounts used to support that person. Tax-exempt income includes certain social security benefits, welfare benefits, nontaxable life insurance proceeds, Armed Forces family allotments, nontaxable pensions, and tax-exempt interest.

You provide $4,000 toward your mother's support during the year. She has earned income of $600, nontaxable social security benefits of $4,800, and tax-exempt interest of $200. She uses all these for her support. You cannot claim an exemption for your mother because the $4,000 you provide is not more than half of her total support of $9,600 ($4,000 + $600 + $4,800 +
$200).

Your brother's daughter takes out a student loan of $2,500 and uses it to pay her college tuition. She is personally responsible for the loan. You provide $2,000 toward her total support. You cannot claim an exemption for her because you provide less than half of her
support.

If a husband and wife each receive benefits that are paid by one check made out to both of them, half of the total paid is considered to be for the support of each spouse, unless they can show otherwise.

If a child receives social security benefits and uses them toward his or her own support, the benefits are considered as provided by the child.

Support provided by the state (welfare, food stamps, housing,
etc.).(p33)

Benefits provided by the state to a needy person generally are considered support provided by the state. However, payments based on the needs of the recipient will not be considered as used entirely for that person's support if it is shown that part of the payments were not used for that purpose.

If you make a lump-sum advance payment to a home for the aged to take care of your relative for life and the payment is based on that person's life expectancy, the amount of support you provide each year is the lump-sum payment divided by the relative's life expectancy. The amount of support you provide also includes any other amounts you provided during the year.

To figure if you provided more than half of a person's support, you must first determine the total support provided for that person. Total support includes amounts spent to provide food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities.

Generally, the amount of an item of support is the amount of the expense incurred in providing that item. For lodging, the amount of support is the fair rental value of the lodging.

Expenses that are not directly related to any one member of a household, such as the cost of food for the household, must be divided among the members of the
household.

Grace Brown, mother of Mary Miller, lives with Frank and Mary Miller and their two children. Grace gets social security benefits of $2,400, which she spends for clothing, transportation, and recreation. Grace has no other income. Frank and Mary's total food expense for the household is $5,200. They pay Grace's medical and drug expenses of $1,200. The fair rental value of the lodging provided for Grace is $1,800 a year, based on the cost of similar rooming facilities. Figure Grace's total support as follows:

Fair rental value of lodging

$ 1,800

Clothing, transportation, and recreation

2,400

Medical expenses

1,200

Share of food (1/5 of $5,200)

1,040

Total support

$6,440

The support Frank and Mary provide, $4,040 ($1,800 lodging + $1,200 medical expenses + $1,040 food), is more than half of Grace's $6,440 total support.

Your parents live with you, your spouse, and your two children in a house you own. The fair rental value of your parents' share of the lodging is $2,000 a year ($1,000 each), which includes furnishings and utilities. Your father receives a nontaxable pension of $4,200, which he spends equally between your mother and himself for items of support such as clothing, transportation, and recreation. Your total food expense for the household is $6,000. Your heat and utility bills amount to $1,200. Your mother has hospital and medical expenses of $600, which you pay during the year. Figure your parents' total support as follows:

Support provided

Father

Mother

Fair rental value of lodging

$1,000

$1,000

Pension spent for their support

2,100

2,100

Share of food (1/6 of $6,000)

1,000

1,000

Medical expenses for mother

600

Parents' total support

$4,100

$4,700

You must apply the support test separately to each parent. You provide $2,000 ($1,000 lodging + $1,000 food) of your father's total support of $4,100 – less than half. You provide $2,600 to your mother ($1,000 lodging + $1,000 food + $600 medical) – more than half of her total support of $4,700. You meet the support test for your mother, but not your father. Heat and utility costs are included in the fair rental value of the lodging, so these are not considered
separately.

If you provide a person with lodging, you are considered to provide support equal to the fair rental value of the room, apartment, house, or other shelter in which the person lives. Fair rental value includes a reasonable allowance for the use of furniture and appliances, and for heat and other utilities that are
provided.

This is the amount you could reasonably expect to receive from a stranger for the same kind of lodging. It is used instead of actual expenses such as taxes, interest, depreciation, paint, insurance, utilities, cost of furniture and appliances, etc. In some cases, fair rental value may be equal to the rent paid.

If you provide the total lodging, the amount of support you provide is the fair rental value of the room the person uses, or a share of the fair rental value of the entire dwelling if the person has use of your entire home. If you do not provide the total lodging, the total fair rental value must be divided depending on how much of the total lodging you provide. If you provide only a part and the person supplies the rest, the fair rental value must be divided between both of you according to the amount each provides.

Your parents live rent free in a house you own. It has a fair rental value of $5,400 a year furnished, which includes a fair rental value of $3,600 for the house and $1,800 for the furniture. This does not include heat and utilities. The house is completely furnished with furniture belonging to your parents. You pay $600 for their utility bills. Utilities are not usually included in rent for houses in the area where your parents live. Therefore, you consider the total fair rental value of the lodging to be $6,000 ($3,600 fair rental value of the unfurnished house + $1,800 allowance for the furnishings provided by your parents + $600 cost of utilities) of which you are considered to provide $4,200 ($3,600 +
$600).

Property provided as support is measured by its fair market value. Fair market value is the price that property would sell for on the open market. It is the price that would be agreed upon between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.

You buy a $200 power lawn mower for your 13-year-old child. The child is given the duty of keeping the lawn trimmed. Because the lawn mower benefits all members of the household, you cannot include the cost of the lawn mower in the support of your
child.

You buy a $150 television set as a birthday present for your 12-year-old child. The television set is placed in your child's bedroom. You can include the cost of the television set in the support of your
child.

You pay $5,000 for a car and register it in your name. You and your 17-year-old daughter use the car equally. Because you own the car and do not give it to your daughter but merely let her use it, you cannot include the cost of the car in your daughter's total support. However, you can include in your daughter's support your out-of-pocket expenses of operating the car for her
benefit.

Your 17-year-old son, using personal funds, buys a car for $4,500. You provide all the rest of your son's support – $4,000. Since the car is bought and owned by your son, the car's fair market value ($4,500) must be included in his support. Your son has provided more than half of his own total support of $8,500 ($4,500 + $4,000), so he is not your qualifying child. You did not provide more than half of his total support, so he is not your qualifying relative. You cannot claim an exemption for your
son.

During the year, your son receives $2,200 from the government under the GI Bill. He uses this amount for his education. You provide the rest of his support – $2,000. Because GI benefits are included in total support, your son's total support is $4,200 ($2,200 + $2,000). You have not provided more than half of his
support.

If you pay someone to provide child or dependent care, you can include these payments in the amount you provided for the support of your child or disabled dependent, even if you claim a credit for the payments. For information on the credit, see
chapter 31.

Sometimes no one provides more than half of the support of a person. Instead, two or more persons, each of whom would be able to take the exemption but for the support test, together provide more than half of the person's
support.

When this happens, you can agree that any one of you who individually provides more than 10% of the person's support, but only one, can claim an exemption for that person as a qualifying relative. Each of the others must sign a statement agreeing not to claim the exemption for that year. The person who claims the exemption must keep these signed statements for his or her records. A multiple support declaration identifying each of the others who agreed not to claim the exemption must be attached to the return of the person claiming the exemption. Form 2120, Multiple Support Declaration, can be used for this purpose.

You can claim an exemption under a multiple support agreement for someone related to you or for someone who lived with you all year as a member of your household.

Enter the total funds belonging to the person you supported, including income received (taxable and nontaxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the beginning of the year. Do not include funds provided by the state; include those amounts on line 23 instead

1.

2.

Enter the amount on line 1 that was used for the person's
support

2.

3.

Enter the amount on line 1 that was used for other purposes

3.

4.

Enter the total amount in the person's savings and other accounts at the end of the
year

4.

5.

Add lines 2 through 4. (This amount should equal line
1.)

5.

Expenses for Entire Household (where the person you supported lived)

6.

Lodging (complete line 6a or 6b):

a. Enter the total rent paid

6a.

b.
Enter the fair rental value of the home. If the person you supported owned the
home,
also include this amount in line 21

6b.

7.

Enter the total food expenses

7.

8.

Enter the total amount of utilities (heat, light, water, etc. not included in line 6a or
6b)

8.

9.

Enter the total amount of repairs (not included in line 6a or
6b)

9.

10.

Enter the total of other expenses. Do not include expenses of maintaining the home, such as mortgage interest, real estate taxes, and insurance

10.

11.

Add lines 6a through 10. These are the total household
expenses

11.

12.

Enter total number of persons who lived in the household

12.

Expenses for the Person You Supported

13.

Divide line 11 by line 12. This is the person's share of the household
expenses

13.

14.

Enter the person's total clothing expenses

14.

15.

Enter the person's total education expenses

15.

16.

Enter the person's total medical and dental expenses not paid for or reimbursed by
insurance

16.

17.

Enter the person's total travel and recreation expenses

17.

18.

Enter the total of the person's other expenses

18.

19.

Add lines 13 through 18. This is the total cost of the person's support for the
year

19.

Did the Person Provide More Than Half of His or Her Own
Support?

20.

Multiply line 19 by 50% (.50)

20.

21.

Enter the amount from line 2, plus the amount from line 6b if the person you supported owned
the home. This is the amount the person provided for his or her own support

21.

22.

Is line 21 more than line 20?

No.
You meet the support test for this person to be your qualifying child. If this
person also meets the other tests to be a qualifying child, stop here; do not
complete lines 23–26. Otherwise, go to line 23 and fill out the rest of
the worksheet to determine if this person is your qualifying relative.

Yes.
You do not meet the support test for this person to be either your qualifying
child or your qualifying relative.
Stop here.

Did You Provide More Than Half?

23.

Enter the amount others provided for the person's support. Include amounts provided by state, local, and other welfare societies or agencies. Do not include any amounts included on line 1

23.

24.

Add lines 21 and 23

24.

25.

Subtract line 24 from line 19. This is the amount you provided for the person's
support

25.

26.

Is line 25 more than line 20?

Yes.
You meet the support test for this person to be your qualifying
relative.

You, your sister, and your two brothers provide the entire support of your mother for the year. You provide 45%, your sister 35%, and your two brothers each provide 10%. Either you or your sister can claim an exemption for your mother. The other must sign a statement agreeing not to take an exemption for your mother. The one who claims the exemption must attach Form 2120, or a similar declaration, to his or her return and must keep the statement signed by the other for his or her records. Because neither brother provides more than 10% of the support, neither can take the exemption and neither has to sign a
statement.

You and your brother each provide 20% of your mother's support for the year. The remaining 60% of her support is provided equally by two persons who are not related to her. She does not live with them. Because more than half of her support is provided by persons who cannot claim an exemption for her, no one can take the
exemption.

Your father lives with you and receives 25% of his support from social security, 40% from you, 24% from his brother (your uncle), and 11% from a friend. Either you or your uncle can take the exemption for your father if the other signs a statement agreeing not to. The one who takes the exemption must attach Form 2120, or a similar declaration, to his return and must keep for his records the signed statement from the one agreeing not to take the
exemption.

Support Test for Children of Divorced or Separated Parents or Parents Who Live
Apart(p36)

In most cases, a child of divorced or separated parents will be a qualifying child of one of the parents. See
Children of divorced or separated parents or parents who live
apart under
Qualifying Child, earlier. However, if the child does not meet the requirements to be a qualifying child of either parent, the child may be a qualifying relative of one of the parents. In that case, the following rules must be used in applying the support
test.

A child will be treated as being the qualifying relative of his or her noncustodial parent if all four of the following statements are
true.

The parents:

Are divorced or legally separated under a decree of divorce or separate
maintenance,

Are separated under a written separation agreement, or

Lived apart at all times during the last 6 months of the year, whether or not they are or were
married.

The child received over half of his or her support for the year from the parents (and the rules on multiple support agreements, explained earlier, do not
apply).

The child is in the custody of one or both parents for more than half of the
year.

A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2011 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child's support during the
year.

The custodial parent is the parent with whom the child lived for the greater number of nights during the year. The other parent is the noncustodial
parent.

If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the rest of the
year.

A child is treated as living with a parent for a night if the child sleeps:

At that parent's home, whether or not the parent is present,
or

In the company of the parent, when the child does not sleep at a parent's home (for example, the parent and child are on vacation
together).

If a child was not with either parent on a particular night (because, for example, the child was staying at a friend's house), the child is treated as living with the parent with whom the child normally would have lived for that night, except for the absence. But if it cannot be determined with which parent the child normally would have lived or if the child would not have lived with either parent that night, the child is treated as not living with either parent that
night.

If, due to a parent's nighttime work schedule, a child lives for a greater number of days but not nights with the parent who works at night, that parent is treated as the custodial parent. On a school day, the child is treated as living at the primary residence registered with the
school.

The custodial parent may use either Form 8332 or a similar statement (containing
the same information required by the form) to make the written declaration to
release the exemption to the noncustodial parent. The noncustodial parent must
attach a copy of the form or statement to his or her tax return.

The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the
declaration.

If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. The decree or agreement must state all three of the following.

The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of
support.

The custodial parent will not claim the child as a dependent for the
year.

The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a
dependent.

The noncustodial parent must attach all of the following pages of the decree or agreement to his or her tax return.

The cover page (write the other parent's social security number on this
page).

The pages that include all of the information identified in items (1) through (3)
above.

The signature page with the other parent's signature and the date of the
agreement.

The noncustodial parent cannot attach pages from the decree or agreement instead of Form 8332 if the decree or agreement went into effect after 2008. The custodial parent must sign either Form 8332 or a similar statement whose only purpose is to release the custodial parent's claim to an exemption for a child, and the noncustodial parent must attach a copy to his or her return. The form or statement must release the custodial parent's claim to the child without any conditions. For example, the release must not depend on the noncustodial parent paying
support.

The noncustodial parent must attach the required information even if it was filed with a return in an earlier
year.

The custodial parent can revoke a release of claim to an exemption that he or she previously released to the noncustodial parent on Form 8332 or a similar statement. In order for the revocation to be effective for 2011, the custodial parent must have given (or made reasonable efforts to give) written notice of the revocation to the noncustodial parent in 2010 or earlier. The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to his or her return for each tax year he or she claims the child as a dependent as a result of the
revocation.

Under a pre-1985 agreement, the noncustodial parent provides $1,200 for the child's support. This amount is considered support provided by the noncustodial parent even if the $1,200 was actually spent on things other than support.

Payments to a spouse that are includible in the spouse's gross income as either alimony, separate maintenance payments, or similar payments from an estate or trust, are not treated as a payment for the support of a
dependent.